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AQUARIUS CAPITAL CHAPPAQUA CENTRAL SCHOOL DISTRICT OTHER POSTEMPLOYMENT BENEFITS (OPEB) REPORTING IN ACCORDANCE WITH GASB 45 FISCAL YEAR JULY 1, 2013 TO JUNE 30, 2014 Prepared by: AQUARIUS CAPITAL SOLUTIONS GROUP LLC Date: March 25, 2014 AQUARIUS CAPITAL 110 Betsy Brown Road Port Chester, NY 10573 Tel: 914-933-0063 Fax: 914-933-0064

March 25, 2014 Mr. John L. Chow Assistant Superintendent for Business Chappaqua Central School District 66 Roaring Brook Road Chappaqua, NY 10514 Re: Report - GASB 43 & 45 Valuation Report for Fiscal Year July 1, 2013 to June 30, 2014 Dear Mr. Chow: Enclosed is an analysis of estimated costs for post employment benefits valuation under Government Accounting Standards Board (GASB) No. 43 & 45 for Chappaqua Central School District (the District ). The valuation was done for fiscal year July 1, 2013 to June 30, 2014. The attached report was completed in accordance with generally accepted actuarial principles and practices. Financial Results Included in the analysis is a Table of Contents. Sections I-III of the report, which is four pages, includes the financial forecast for GASB 45. As an example, the unfunded accrued liability (UAL), which is the accrued liability less assets, is approximately $97.4 million as of July 1, 2013 and the projected annual other postemployment benefits (OPEB) cost is $4.8 million. The projected Net OPEB Obligation as of June 30, 2014 is $11.9 million, which is based on the projected pay-as-you-go number for fiscal year July 1, 2013 to June 30, 2014 as reported by the district. Pages 1-2 of the report illustrate the financial projections for the plan as of year-end June 30, 2014 to assist your auditors with accounting for the respective plan year. Although the auditors may only require pages 1-2, we recommend forwarding the report in its entirety. Results for this valuation were valued based on census information provided by your organization in February 2014. This is based on a total of 976 employees, reflecting the sum of 607 active employees and 369 retired employees. The active population reflects approximately 42.0% of the unfunded accrued liability above, with 169 employees or 27.8% of these actives eligible for retirement. Details of census demographic information are illustrated further in the report. Covered Benefits and Claim Cost Assumptions The District provides post-employment medical benefits including prescription drug benefits as part of the medical plan on a fully insured basis through the Putnam Northern Westchester Health Benefits Consortium (the Consortium). A second plan is available through Empire Blue Cross/Blue Shield, which was a change from Emblem Health, effective July 1, 2012. Premium rate information was provided through June 30, 2014 for both plans and reflected in the valuation. Furthermore, premium rates for the Consortium are reflected through June 30, 2015 since available for this valuation. AQUARIUS CAPITAL 110 Betsy Brown Road Port Chester, NY 10573 Tel: 914-933-0063 Fax: 914-933-0064

Mr. John Chow March 25, 2014 Page 2 Sensitivity Analysis Section II of the report includes a sensitivity analysis based on varying the discount interest rate and the healthcare cost inflation rate (trend). The discount rate used was 5%, which is consistent with the discount rate used for the prior year valuation. We have not performed a review of the District s investments. If a different discount rate is preferred, then please contact us. Increasing the discount rate by 1% (a discount rate of 6%) would lower the UAL by approximately 13.0%. Conversely, lowering the discount rate by 1% (a discount rate of 4%) would increase the UAL by approximately 16.6%. Results are illustrated as of the July 1, 2013 valuation date. See page 3 of the report for details of both scenarios. Section II of the report also includes a sensitivity analysis based on varying the healthcare cost inflation rate (trend). A 1% trend factor increase would increase the UAL by approximately 19.2%. Our forecast applied the 1% increase beginning in July 1, 2015 and later, treating plan years July 1, 2013 to June 30, 2014 and July 1, 2014 to June 30, 2015 costs as fixed (known) costs since the Consortium plan premium rates have already been released. Results are illustrated as of the July 1, 2013 valuation date. Details of these scenarios are illustrated on page 3 of the attached report. Please contact us if you desire additional scenarios. Additional Seventy Two (72) Scenarios Similar to last year, we incorporated additional scenarios for the valuation as requested by the District, which are illustrated on pages 14-15. All scenarios are identical to the prior year. This includes forty two (42) combinations of discount rate and healthcare cost inflation rate, which are illustrated on page 13 of the report. Also included are thirty (30) combinations of future retiree contribution rates (illustrative percentages) and the ultimate healthcare inflation rates. It should be noted that the retiree contribution rates are scenarios for illustrative purposes and have not been implemented or negotiated. Retiree contribution rate scenarios assume that current retiree contribution rates will not change and changes to retiree contribution rates would only apply to current actives that would retire in the future. Similar to past years, the thirty (30) scenarios reflect the use of the same contribution rate for all future retirees, regardless of union or employment class. These scenarios are illustrated on page 14 of the report. The ultimate healthcare inflation rates for all seventy two (72) scenarios on pages 14-15 are applied for years 2020 and later. All other assumptions are based on the valuation assumptions in the report. Projected Pay-As-You-Go Projections for Twenty (20) Years The District reflected for the July 1, 2013 valuation to include a forecast of the projected pay-as-you-go for twenty (20) years. This is illustrated on page 16 of the report. AQUARIUS CAPITAL 110 Betsy Brown Road Port Chester, NY 10573 Tel: 914-933-0063 Fax: 914-933-0064

Mr. John Chow March 25, 2014 Page 3 Illustration of the Net OPEB Obligation for Two Discount Rate Scenarios In the prior year audited financial statements, it was requested to illustrate the Net OPEB Obligation under two discount rate assumptions (e.g., 3% and 4%). These same scenarios were illustrated for this valuation and included in the valuation report on the top of page 4. Overview of Actuarial Gain/Loss On page 4 (Section III) of the valuation report, we illustrate an actuarial gain of $4.3 million (or 4.24% decrease in the June 30, 2013 UAL), which is part of the calculation of OPEB costs. This reflects the decrease in the UAL as of July 1, 2013 as compared to the UAL as reported in the prior year valuation report roll forward to yearend June 30, 2013. The primary drivers of the cost decrease are due to the favorable premium rate increases for the most current valuation (e.g., the rate increase for fiscal year July 1, 2014 to June 30, 2015 is 1.56% for the Consortium) and employee counts (actives and retirees are lower than the prior valuation). Details of the actuarial loss are illustrated on page 4 of the report. Demographic Information Section IV of the report illustrates additional information pertaining to underlying census information including age and sex analysis for active and retired employees along with summaries of the active population by age and years of service. Census analysis is illustrated separately for actives and retirees. This is highlighted on pages 5-7 of the report. Some highlights of census demographic information as of the July 1, 2013 valuation date are as follows: For retirees, the overall average age is 73.8 years, which reflects an average age of 61.8 for pre-65 retirees and 76.3 for post-65 retirees with 17.1% of retirees below age 65. For actives, the average age is 48.1 years and average years of service of 11.9. Of the active population, 27.8% of the population (169 employees) is eligible to retire. 73.6% actives and 65.6% retirees valued were female. Active population includes employees that opted-out of coverage, similar to the prior valuation. The report also includes a comparison of demographics from the prior valuation report, i.e., the July 1, 2012 valuation. See page 7 for details. Assumptions & Definitions As part of this report, we included supporting documentation such as a summary of assumptions and key definitions (glossary), which are provided in Sections V and VI, respectively. This includes assumptions for health care costs (premium rates through June 30, 2015 for the Consortium plan and June 30, 2014 for the Blue Cross plan), retiree contribution rates, healthcare inflation, decrement tables (e.g., probability of death, turnover, disability and retirement) and other provisions. AQUARIUS CAPITAL 110 Betsy Brown Road Port Chester, NY 10573 Tel: 914-933-0063 Fax: 914-933-0064

Mr. John Chow March 25, 2014 Page 4 The decrement tables used for this valuation are based on the New York State Employees Retirement System (ERS) and the New York State Teachers Retirement System (TRS), similar to the prior valuation. The mortality table used for the prior valuation was the RP 2000 Healthy Male and Female Tables based on the Combined Healthy Table for both pre and post-retirement with mortality improvement projected to the valuation date similar to the previous valuation. For additional details on assumptions and definitions, see pages 8-13. Healthcare Reform The Patient Protection and Affordable Care Act (PPACA) enacted in March 2010 (Healthcare Reform) includes several fees and/or taxes levied on employer groups either directly (e.g., self-funded employer groups which calculates and pays the fees directly) or indirectly (e.g., fully insured groups in which the health insurer pays and passes on to the group in their premium rates.) Details of these fees are illustrated in page 9 of this report. Information Reviewed We based our analysis on reviewing electronic census information (record-by-record review), retiree plan information, cost information (premium rates through June 30, 2015 for the Consortium plan), collective bargaining contracts by bargaining unit, audited financial statements as of June 30, 2013, and other summary information of retiree benefits and eligibility. The Net OPEB Obligation as of June 30, 2014 reflects the projected pay-as-you-go results for fiscal year July 1, 2013 to June 30, 2014. We also gathered additional information from the company through emails and other correspondence in order to confirm retiree benefit information, census confirmations, and assumptions. Census information was provided in February 2014 for actives and retirees with details illustrated in Section IV of the report, including comparisons to the prior year valuation report. Data Reliance & Limitations In our review, we have relied on the information provided by the District. We have not audited or verified the accuracy of the information provided. If the underlying data or information is inaccurate or incomplete, the results of our analysis may likewise be inaccurate or incomplete. This report and all attachments contained herein are for the internal use of the District. It may not be provided to other parties without prior consent. If consent is granted, the report must be provided in its entirety. We understand the District intends to distribute this letter and attachments to its auditor and fee accountant in connection with the reporting of results of this report for the sole use of preparation of audited financial statements. Aquarius consents to this distribution as long as the report is provided in its entirety and the auditor is advised to have an actuary review the work. AQUARIUS CAPITAL 110 Betsy Brown Road Port Chester, NY 10573 Tel: 914-933-0063 Fax: 914-933-0064

Mr. John Chow March 25, 2014 Page 5 This report is provided to the District for the purpose of calculation results under GASB 45. Information in this report may not be appropriate to use for other purposes. Aquarius does not intend to benefit from the overall results of the report and we assume no duty, liability or obligation to parties that use this work for other reasons other than its intention, i.e., reporting of GASB 45 for financial statements. Actuarial Opinion I, Michael L. Frank, ASA, FCA, MAAA, am President and Actuary of Aquarius Capital Solutions Group LLC. I am an Associate of the Society of Actuaries, Fellow of Conference of Consulting Actuaries, and Member of the American Academy of Actuaries and I meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. The attached report was completed in accordance with generally accepted actuarial principles and practices. We hope that this report is beneficial. When convenient, please contact me so that we can schedule a call or meeting to review report in more detail. In addition, please extend thanks to you and your team for assistance in the gathering of information to help us complete this analysis. Their assistance was much appreciated. We look forward to working with you in the future. Sincerely, Michael L. Frank, A.S.A., M.A.A.A., F.C.A. President & Actuary Cc: Donald Rusconi Aquarius Capital Enclosure AQUARIUS CAPITAL 110 Betsy Brown Road Port Chester, NY 10573 Tel: 914-933-0063 Fax: 914-933-0064

CHAPPAQUA CENTRAL SCHOOL DISTRICT GASB NO. 43 & 45 VALUATION AS OF JULY 1, 2013 Prepared by: Aquarius Capital Solutions Group LLC March 25, 2014

TABLE OF CONTENTS Pages Sections I - III Summary of Financial Information including Sensitivity Analysis 1-4 Section I: Financial Results for June 30, 2014 Disclosure 1-2 Section II: Sensitivity Analysis for Discount Rate and Healthcare Cost Inflation 3 Section III-A: Scenarios for Discount Rate Sensitivity for Net OPEB Obligation 4 Section III-B: Summary of Gain/Loss Analysis from Prior Valuation 4 Section IV Summary of Census Information for Active & Retired Employees 5-7 Summary of Retired Employees 5 Summary of Active Employees 6 Comparison of Census Information to July 1, 2011 Valuation 7 Section V Summary of Assumptions 8-12 Section VI Summary of Definitions & Glossary 13 Section VII Summary of Scenarios for Discount Rates & Healthcare Cost Trend Rates - 42 Scenarios 14 Section VIII Summary of Scenarios for Retiree Contribution Rates & Healthcare Cost Trend Rates - 30 Scenarios 15 Section IX Projection of Pay-As-You-Go Payments for Twenty (20) Years 16

Page 1 SECTION I: FINANCIAL RESULTS AS OF JULY 1, 2013 VALUATION FOR YEAR END DISCLOSURE (First Year of Implementation is Fiscal Year July 1, 2008 to June 30, 2009) 1 Discount Rate 5.00% Section 1: Development of Service Cost 2 Service Cost at Beginning of Year as of July 1, 2013 $ 2,040,164 3 Interest on Service Cost $ 102,008 (2) x (1) 4 Service Cost with Interest to Year End $ 2,142,172 (2) + (3) Section 2: Projected Unfunded Accrued Liability to Year End 5 Accrued Liability (AL) as of July 1, 2013 $ 97,392,041 6 Assets $ - 7 Unfunded Accrued Liability (UAL) as of July 1, 2013 $ 97,392,041 (5) - (6) 8 Service Cost with Interest to Year End $ 2,142,172 (4) 9 Pay-As-You-Go Benefits - Projected for fiscal year July 1, 2013 to June 30, 2014 $ 4,487,851 10 Interest on Unfunded Accrued Liability $ 4,757,406 (7) x (1) - (9) x (1) / 2 11 Projected Unfunded Accrued Liability (UAL) as of June 30, 2014 $ 99,803,768 (7) + (8) - (9) + (10) Section 3: Amortization of Initial Unfunded Accrued Liability 12 Initial Unfunded Accrued Liability at Implementation - July 1, 2008 Valuation $ 92,868,117 (Same as Prior Valuation) 13 30 Year Amortization Factor in Years 30 (Same amortization as prior valuation) 14 Amortization of Initial Unfunded Accrued Liability as of July 1, 2008 $ 3,095,604 (12) / (13), (Closed Amortization Basis-Same as the Prior Valuation) 15 Interest on Amortization of Unfunded Accrued Liability $ 154,780 (1) x (14) 16 Total Amortization of Unfunded Accrued Liability w/ Interest $ 3,250,384 (14) + (15) 17 # of Years of Amortization of Initial UAL, including Current Valuation 6

Page 2 SECTION I: FINANCIAL RESULTS AS OF JULY 1, 2012 VALUATION FOR YEAR END DISCLOSURE (CONTINUED) Section 4: Adjustments to Annual Required Contribution (ARC) 18 Unfunded Accrued Liability (UAL) as of July 1, 2013 $ 97,392,041 (7) 19 Projected Unfunded Accrued Liability as of June 30, 2013 $ 101,705,759 (Prior Valuation Projected to Yearend June 30, 2013) 20 Experience (Gain)/Loss on Unfunded Accrued Liability as of July 1, 2013 $ (4,313,718) (18) - (19) 21 Net OPEB Obligation as of June 30, 2013 $ 11,611,863 (Audited Financial Statements as of year-end 6/30/2013, page 40) 22 Total (Gain)/Loss since Prior Valuation a. Calculation of Experience (Gain)/Loss on UAL as of July 1, 2013: (20) $ (4,313,718) b. Amortization of (Gain)/Loss (Amortization factor over 15 years) 15 c. Amortization for (Gain)/Loss for Current Period: (22a) / (22b) $ (287,581) 23 Amortization Period for (Gain)/Loss based on Prior Valuation $ (916,947) (Developed from Prior Valuation Report) 24 Adjustment to ARC - Amortization of (Gain)/Loss $ (1,204,528) (22c) + (23) Section 5: Summary of Annual OPEB Cost & Net OPEB Obligation as of June 30, 2014 25 Unfunded Accrued Liability (UAL) as of July 1, 2013 $ 97,392,041 (7) 26 Total Service Cost with Interest - July 1, 2013 to June 30, 2014 $ 2,142,172 (4) 27 Total Amortization of Initial Unfunded Accrued Liability w/ Interest $ 3,250,384 (16) 28 Annual Required Contribution (ARC) $ 5,392,556 (26) + (27) 29 Interest on Net OPEB Obligation as of July 1, 2013 $ 580,593 (1) x (21) 30 Adjustment to ARC $ (1,204,528) (24) 31 Annual OPEB Cost $ 4,768,621 (28) + (29) + (30) 32 Contributions Made (Pay-As-You-Go Costs) - Projected $ 4,487,851 (9) 33 Net OPEB Expense Cost at June 30, 2014 $ 280,770 (31) - (32) 34 Net OPEB Obligation as of June 30, 2013 $ 11,611,863 (21) 35 Net OPEB Obligation as of June 30, 2014 $ 11,892,633 (33) + (34)

Page 3 SECTION II - SUMMARY OF FINANCIAL INFORMATION INCLUDING SENSITIVITY ANALYSIS Summary of Financial Results with Sensitivity Analysis Sensitivity Analysis Sensitivity Analysis Healthcare Cost (July 1, 2013 Valuation Date) Val. Discount Val. Discount Val. Discount Trend Rate Rate of Rate of Rate of Assumptions 5.00% 6.00% 4.00% Increased 1% Results illustrated as of July 1, 2013 Total Total Total Total 1 Total Employee Lives a. Actives 607 607 607 607 b. Retirees 369 369 369 369 c. Subtotal 976 976 976 976 2 Present Value of Future Benefits (PVFB) as of July 1, 2013 a. Actives $ 57,420,840 $ 44,793,476 $ 74,915,679 $ 79,825,141 b. Retirees $ 56,525,011 $ 51,917,227 $ 61,915,953 $ 61,854,061 c. Subtotal $ 113,945,851 $ 96,710,703 $ 136,831,632 $ 141,679,202 d. % Actives as ratio of Subtotal 50.4% 46.3% 54.8% 56.3% e. Sensitivity Analysis of Subtotal: Ratio to Valuation Results for PVFB 84.9% 120.1% 124.3% 3 Accrued Liability (AL) as of July 1, 2013 a. Actives $ 40,867,030 $ 32,810,274 $ 51,649,895 $ 54,205,747 b. Retirees $ 56,525,011 $ 51,917,227 $ 61,915,953 $ 61,854,061 c. Subtotal $ 97,392,041 $ 84,727,501 $ 113,565,848 $ 116,059,808 d. % Actives as ratio of Subtotal 42.0% 38.7% 45.5% 46.7% e. Sensitivity Analysis of Subtotal: Ratio to Valuation Results for AL 87.0% 116.6% 119.2% 4 Assets as of July 1, 2013 $ - $ - $ - $ - 5 Unfunded Accrued Liability (UAL) as of July 1, 2013 $ 97,392,041 $ 84,727,501 $ 113,565,848 $ 116,059,808 (3c) - (4) 6 Service Cost with Interest a. Service Cost at Year End: $ 2,142,172 $ 1,638,507 $ 2,844,147 $ 3,101,001 b. Ratio to Valuation Results for Service Cost 76.5% 132.8% 144.8% 7 Pay-As-You-Go Benefits - Illustrated as Projected $ 4,487,851 $ 4,487,851 $ 4,487,851 $ 4,487,851 8 Ratio of AL to Pay-As-You-Go: (3c) / (7) 21.70 18.88 25.31 25.86 9 Ratio of Service Cost to Pay-As-You-Go: (6a) / (7) 0.48 0.37 0.63 0.69 10 Average Annual Pay-As-You-Go Benefit per Retiree $ 12,162 $ 12,162 $ 12,162 $ 12,162 (7) / (1b) 11 Three Year Projection of Pay-As-You-Go Costs a. Year 1: July 1, 2013 to June 30, 2014 $ 4,487,851 $ 4,487,851 $ 4,487,851 $ 4,487,851 b. Year 2: July 1, 2014 to June 30, 2015 $ 4,411,971 $ 4,411,971 $ 4,411,971 $ 4,411,971 c. Year 3: July 1, 2015 to June 30, 2016 $ 4,623,344 $ 4,623,344 $ 4,623,344 $ 4,666,517 Notes: 1. All costs are net of retiree contributions. See pages 1-2 for financial statement information. 2. Healthcare trend inflation assumption applies to Year 3, since premium rates (costs) are known for Year 2.

Page 4 SECTION III - SUMMARY OF FINANCIAL INFORMATION INCLUDING GAIN/LOSS ANALYSIS A. Discount Rate Sensitivity for Net OPEB Obligation for GASB45 Footnote in Audited Financial Statements Unfunded Change in the Change in the Accrued Unfunded Net OPEB Net OPEB Liability as of Accrued Liability Obligation as of Obligation from Discount Interest Rate July 1, 2013 from 5% Scenario June 30, 2014 5% Scenario 5.0% $ 97,392,041 n/a $ 11,892,633 n/a 4.0% $ 113,565,848 $ 16,173,807 $ 13,525,787 $ 1,633,154 3.0% $ 134,559,754 $ 37,167,713 $ 15,770,748 $ 3,878,115 B. Summary of Experienced (Gain)/Loss as of July 1, 2013 1 Calculation of Experience (Gain)/Loss on Unfunded Accrued Liability as of July 1, 2013 $ (4,313,718) (See Page 2, Line 20 of Report) 2 Prior Valuation Unfunded Accrued Liability as of June 30, 2013 $ 101,705,759 (See Page 2, Line 19 of Report) 3 Ratio of (Gain)/Loss to Prior Valuation Unfunded Accrued Liability -4.24% (1) / (2) 4 Distribution of Experience (Gain)/Loss as of July 1, 2013 % Distribution a. Impact due to changes in headcounts from prior valuation $ (618,681) 14.3% b. Impact due to changes in demographics, cost information and other valuation assumptions* $ (3,695,037) 85.7% c. Subtotal: (a) + (b) $ (4,313,718) 100.0% *Note: Actuarial gain in line 4b is primarily driven by favorable premium rate increase for fiscal year July 1, 2014 to June 30, 2015.

Page 5 SECTION IV - SUMMARY OF CENSUS INFORMATION Summary of Enrollment by Age Band for Retirees and Spouses, calculated as of July 1, 2013 Age Band Female Male Subtotal % Subtotal Under 50 - - - 0.0% 50 to 54 - - - 0.0% 55 to 59 6 6 12 3.3% 60 to 64 35 16 51 13.8% 65 to 69 57 22 79 21.4% 70 to 74 44 28 72 19.5% 75 to 79 28 12 40 10.8% 80 to 84 38 21 59 16.0% 85 to 89 21 15 36 9.8% 90 to 94 9 6 15 4.1% 95 + 4 1 5 1.4% Subtotal 242 127 369 100.0% % Subtotal 65.6% 34.4% 100.0% Female Male Subtotal % Subtotal Pre 65 Retirees 41 22 63 17.1% Post 65 Retirees 201 105 306 82.9% Subtotal 242 127 369 100.0% Average Age Pre 65 Retirees 61.8 Post 65 Retirees 76.3 Subtotal 73.8

Page 6 SECTION IV - SUMMARY OF CENSUS INFORMATION (CONTINUED) Summary of Census for Actives by Age Band and Years of Service, calculated as of July 1, 2013 Years of Service Age Band Under 25 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 Age 65 + 0 to 4 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 + Subtotal % Subtotal 4 - - - - - - - 4 0.7% 10 3 1 - - - - - 14 2.3% 10 34 12 - - - - - 56 9.2% 7 28 26 5 - - - - 66 10.9% 11 13 38 16 2 - - - 80 13.2% 16 29 29 14 7 2 - - 97 16.0% 12 31 24 15 12 7 2-103 17.0% 1 22 31 21 18 5 3 2 103 17.0% 4 12 17 10 7 2 9 2 63 10.4% - - 6 6 2 4 3-21 3.5% Subtotal 75 172 184 87 48 20 17 4 607 100.0% % Subtotal 12.4% 28.3% 30.3% 14.3% 7.9% 3.3% 2.8% 0.7% 100.0% Actives Average Age: 48.1 Average Years of Service: 11.9 % by Gender Female 447 73.6% Male 160 26.4% Total 607 100.0% Actives by Service Category Actives Not Yet Eligible for Benefits 438 72.2% Actives Eligible for Benefits 169 27.8% Total 607 100.0% Note: Active counts above include employees currently opting out of coverage (e.g., receiving buy-out). For valuation purposes, it is assumed that 100% of these individuals elect since coverage in retirement.

Page 7 SECTION IV - SUMMARY OF CENSUS INFORMATION (CONTINUED) Comparison of Census Information with Prior Valuation Report (July 1, 2012) July 1, 2013 July 1, 2012 Difference % Difference Summary of Counts Actives 607 614 (7) -1.1% Retirees 369 370 (1) -0.3% Total 976 984 (8) -0.8% Retiree Counts - % Pre-65 17.1% 20.5% -3.4% -16.6% Average Age Actives o Current Age 48.1 47.4 0.7 1.5% o Hire Age 36.2 36.2 0.0 0.0% Retirees o Pre-65 61.8 61.7 0.1 0.2% o Post-65 76.3 76.4 (0.1) -0.1% o Total 73.8 73.4 0.4 0.5% Average Years of Service Actives - Average Years of Service 11.9 11.2 0.7 6.3% Actives Eligible for Benefits 169 169-0.0% % Actives Eligible for Benefits 27.8% 27.5% 0.3% 1.1% Gender % Female - Actives 73.6% 74.1% -0.5% -0.7% % Female - Retirees 65.6% 65.7% -0.1% -0.2% Note: Active counts above include employees currently opting out of coverage (e.g., receiving buy-out). For valuation purposes, it is assumed that 100% of these individuals elect since coverage in retirement.

Page 8 SECTION V - SUMMARY OF ASSUMPTIONS Company Chappaqua Central School District Valuation Date July 1, 2013 Initial Implementation Year July 1, 2008 to June 30, 2009 Discount Rate 5.0% Purpose of Work Covered Benefits Information for Valuation Retirement Benefits Insurance Coverage Funding Basis Assets Actuarial Cost Method Health Care Cost Trend Assumption This report is provided to the Company for the purpose of calculation results under GASB 45. Information in this report may not be appropriate to use for other purposes. Aquarius does not intend to benefit from the overall results of the report and we assume no duty, liability or obligation to parties that use this work for other reasons other than its intention, i.e., reporting of GASB 45 for financial statements. Coverage for medical only including prescription drug coverage as part of medical plan. Certain retirees are eligible for life insurance and receive on a non-contributory basis. All information was provided by the Company for active and retired population. Coverage for pre-65 and post-65 retirement coverage valued for active and retired population. Medical, including prescription drugs, is fully insured through Putnam Northern Westchester Health Benefits Consortium ("Consortium") and Empire Blue Cross/Blue Shield. The Empire plan is new plan effective July 1, 2013, replacing the medical plan with Emblem Health. Not valued since benefit is unfunded. Assets are zero. Projected Unit Credit. The following assumptions are used for annual healthcare cost inflation (trend): Year Pre-65 Post 65 Initial Trend July 1, 2015 7.0% 7.0% Ultimate Trend July 1, 2019 & Later 4.0% 4.0% Grading Per Year 1.0% 1.0% Starting Claim Cost Base plan costs for medical are based on premium rates for plan years July 1, 2013 to June 30, 2014 and July 1, 2014 to June 30, 2015. Both plan years were reflected in the valuation since known premium cost. Medical insured monthly premiums for pre-65 and post-65 retirees for the Consortium along with the Medicare Part B premium are illustrated below by coverage tier. Plan Year Plan Year Plan Year Consortium Plan 7/12 to 6/13 7/13 to 6/14 7/14 to 6/15 Single - Pre 65 $ 621.00 $ 640.00 $ 650.00 Family - Pre 65 1,552.00 1,600.00 1,625.00 Single - Post 65 $ 559.00 $ 576.00 $ 585.00 Family - Post 65 1,242.00 1,280.00 1,300.00 1/12 to 12/12 1/13 to 12/13 1/14 to 12/14 Standard Medicare Part B $ 99.90 $ 104.90 $ 104.90 per Member The above costs are based on 100% before retiree contributions. These costs are valued to assume administrative expenses since fully insured. The Empire Blue Cross/Blue Shield is a fully insured medical plan while Consortium plan is assumed fully insured since purchased as part of a consortium medical plan with pooled rates among the combined participants, i.e., all participating employers. All plans have plan year July 1 to June 30. The monthly cost amounts (premium rates) are trended forward based on the percentrages which are listed under "Health Care Cost Trend Assumptions" above. Projected Benefit Costs The medical plans are community rated, therefore retiree claim costs are based on actual premium rates without adjustment for aging. This is consistent with Actuarial Standards of Practice No. 6.

Page 9 SECTION V - SUMMARY OF ASSUMPTIONS (CONTINUED) Medicare Part B Reimbursements Medicare Part D Healthcare Reform Impact Valuation reflects the reimbursement of Medicare Part B premium to retirees, spouses and surviving spouses over age 65 that are eligible for the benefit. Employee will pay Medicare Part B premium and be reimbursed by Company. Company does not reimburse for Medicare Part D premium. The Patient Protection and Affordable Care Act (PPACA) enacted in March 2010 (Healthcare Reform) includes several fees and/or taxes levied on employer groups either directly (e.g., self-funded employer groups which calculates and pays the fees directly) or indirectly (e.g., fully insured employer groups in which the health insurer pays and passes on to the group in their premium rates.) The fees contemplated in this valuation are 1) Comparative Effectiveness Research fee, 2) Health Insurance Industry fee, 3) Reinsurance Assessment, and 4) High Cost Plans Excise Tax ("Cadillac tax"). The Comparative Effectiveness Research fee runs through 2019 and is tax deductible. The initial fee is $1 per participant per year increasing to $2 in the next year. Subsequent years are increased based on medical inflation. The fee applies to post-65 retirees where Medicare is the primary payer. The Health Insurance Industry fee is based on targeted fixed fees to be paid by the health insurance industry and is not tax deductible. The total fee amount to be paid by health insurers starts at $8 billion in 2014 and increases to $14.3 billion in 2018. After 2018, the fee increases annually based on premium growth. Starting in 2014, the fee is estimated to be approximately 2.0% to 2.5% of premium increasing to approximately 3.0% to 4.0% in future years. The fee applies to fully insured plans including Medicare Advantage plans and excludes self-funded employer sponsored group health plans. For this valuation, it is assumed that the Consortium plan is self-funded so this specific fee will not apply. The Reinsurance Assessment is a short term fee levied on fully insured and self-funded employer groups between 2014 and 2016 and is tax deductible. The 2014 fee is $63 per member per year. The 2015 fee is estimated to be between $40 and $45 PMPY and the 2016 fee is estimated at $25 to $30 PMPY. The fee applies to pre-65 group retiree plans and post-65 plans where Medicare is the secondary payer. Post-65 retirees where Medicare is the primary payer are excluded from this fee. The High Cost Plans Excise tax includes a 40% tax ("Cadillac tax") on high cost plans that will be levied on insurers and third party administrators (TPA) beginning in 2018 and will not be tax deductible. It will be calculated separately for single and family coverage and will be equal to 40% of the excess of per employee plan costs, net of patient cost sharing, over the 2018 stated cost limits of: o - $10,200 single / $27,500 family o - $11,850 single / $30,950 family for retirees age 55-64 The 2018 limits above may be increased if higher than expected trends are realized from 2010 through 2018 in the benchmark plan. The benchmark plan is the Federal Employees Health Benefits Plan (FEHBP) Blue Blue Cross/Blue Shield standard option. The limits will be adjusted to the extent per employee costs in the benchmark plan increase by more than 55% from 2010 to 2018 (for example, if the benchmark plan increase is 60% between 2010 and 2018, the cost limits will increase by the excess over 55% or 5%.) The final 2018 limits will be increased by CPI + 1% for 2019 and by CPI thereafter. For this valuation, it is assumed that CPI will be 3% in 2019 and beyond. For valuation purposes, it is assumed the trend adjustments to the cost limits in the benchmark plan (FEHBP) are equal to actual premium increases in the FEHBP plan for 2010 through 2014 and projected increases in costs from 2015 through 2018 as listed in the "Health Care Cost Trend Assumption" above. For each year from 2018 and beyond, the excess of projected future premiums over future adjusted cost limits are multiplied by 40% and then adjusted (grossed up) for the assumed marginal tax rate of 35%. It is assumed that any excise tax payable by an insurer/tpa will be passed on to the entity through increased premiums/costs (whether billed separately or not.) Plan Design Changes Valuation assumes no changes in future plan designs (e.g., deductibles, coinsurance, etc.) from current benefits offered for the current plan year. It is assumed that the current level of benefits will remain, with no modifications to avoid the potential excise "cadillac" tax imposed by the Patient Protection and Affordable Care Act (PPACA) described in detail above.

Page 10 SECTION V - SUMMARY OF ASSUMPTIONS (CONTINUED) Future Contributions for Medical Retiree contributions as a percentage of premium remain constant over the valuation. No benefit cost cap changes other than increases due to inflation and the PPACA excise tax calculation as projected in the valuation. % Future Retirees Opting Out None, assume 100% participation for those covered as actives. All eligible active and retiree employee records provided by client were valued. Census Information New Hires Payroll Information Retirement System (ERS & TRS) Retirement Eligibility Assumptions Retiree Contribution Rates Participant data provided by the Company dated February 2014. We relied on information provided as being accurate and we have not conducted any data audits. One census file was provided for both actives and retirees. All data supplied to us by Company. This valuation is based on a closed group and does not reflect the impact of future new entrants (e.g., new hires after date of data collection, i.e., February 2014) into the plan. Payroll information was not reflected or valued in this analysis, as benefit and retiree contributions are not based on payroll so this information was not necessary for this valuation. Valuation is based on the most recent New York State Employees' Retirement System (ERS), and the New York State Teachers' Retirement System (TRS). ERS tables were based on version released in 2010 while TRS tables were based on the version released in 2011. Eligibility for early retirement is based on meeting a criteria of minimum age and/or years of service (YOS) requirements. All employees are assumed to be eligible upon reaching age fifty five (55) and completing five (5) years of service, which is based on the current contracts as provided by the client. For employees retiring prior to June 30, 2013, retiree contribution percentages are as follows: Teachers Clerical Custodians Contract Year (CCT) (COSA) (CSEA) Administration 2007 to 2008 5.00% 5.00% 6.00% 8.00% 7/2008 to 12/2008 6.50% 6.50% 7.00% 10.00% 1/2009 to 6/2009 6.50% 6.50% 8.00% 10.00% 2009 to 2010 7.75% 7.75% 8.00% 10.00% 2010 to 2011 9.00% 9.00% 8.00% 11.00% 2011 to 2012 10.00% 9.00% 10.50% 13.00% 2012 to 2013 11.00% 9.00% 10.50% 15.00% 2013 to 2014 12.25% 9.00% 11.75% 16.25% 2014 to 2015 13.50% 9.00% 13.00% 17.50% Please note that for Custodial, contribution rates for the period May 1, 2011 to June 30, 2011 are 9%. Retirees contribution rates vary based on class of employees. Contribution rates are based on a percentage of premium. For the Consortium plan, contribution rate percentages are as follows for future retirees (single or family) after June 30, 2015. Future Retiree Division Contribution % Teachers (CCT) 13.5% Clerical (COSA) 9.0% Administration 17.5% Custodians (CSEA) 13.0% Contribution rates were reviewed from the collective bargaining agreements posted on the District website. Retiree contribution rates for alternative plan are established at the Consortium premium plan rates plus the incremental cost amount in order for the company to have a net cost structure similar to the current Consortium plan. Since the alternative plan (Blue Cross) premium rates are assumed higher than Aetna, then the net cost to the company is the same under both the Aetna and the alternative plans.

Page 11 SECTION V - SUMMARY OF ASSUMPTIONS (CONTINUED) Mortality Turnover Assumptions Disability Assumptions Retirement Assumptions Valuation of Spouses & Marital Status Spouse Age Assumptions Surviving Spouses & Surviving Dependents Buy Backs (Opt Outs/Waivers) Vesteds & Leave of Absence Cobra Participants RP 2000 Healthy Male and Female Tables are based on the Combined Healthy Table for both pre and post-retirement projected with mortality improvements using Projection Scale AA for 13.5 years, i.e., from date of table to valuation date. Mortality improvement is an additional assumption incorporated into this valuation report. This reflects rate of separation from the active plan and excludes retirement and disability. Turnover table varies by age, gender and years of service with rates of turnover based on the NYS Employees' Retirement System (ERS), and the NYS Teachers' Retirement System (TRS). This reflects disability assumptions from the active plan and is based on age and gender. This is the assumption used for the NYS Employees' Retirement System (ERS), the NYS Teachers' Retirement System (TRS). This reflects rate of retirement from the active plan and is based on age and gender. This is the assumption used for the NYS Employees' Retirement System (ERS) and the NYS Teacher's Retirement System (TRS). Spouses are valued for benefits similar to retired employees. Employees with spouses are assumed to be married to those spouses at and throughout retirement. Employees that are without spouses (or not covering a spouse) are assumed to be single at and throughout retirement. Employees electing family coverage are assumed to continue family coverage 85% of the time in retirement. For missing date of births, we are assuming that female spouses are three years younger than male employees and male spouses are three years old than female employees. This is applied for spouses without dates of birth. This was assumed since spouse dates of birth were not available for all actives and retirees with family coverage. Surviving dependents do not receive subsidized health insurance or any reimbursements for Medicare Part B coverage. Any health insurance coverage provided by company is individual pay all coverage resulting in no additional liability to the company. A portion of individuals that elected buy back option (i.e., opt outs) as actives are assumed to enroll in coverage at retirement. Individuals must be covered as actives prior to retirement in order to be eligible for benefits at retirement. We are assuming 1/4 of individuals will re-enroll at open enrollment in the year prior to retirement in order to obtain retiree benefits. Individuals are assumed to be single since no spouse information was available. There were no individuals listed as vested or on leave of absence. COBRA participants were excluded from the valuation. Employees on Leave Nine (9) employees are currently on leave. All employees were valued assuming 50% of these employees would return to work. Missing Census Information o Dates of Birth o Dates of Hire o Gender o Coverage Tier No retired employees were missing date of birth, so no special adjustments were needed. Ten (10) active employees were missing date of birth, so assumed hire age of forty nine (49) for for valuation based on average age of hire from prior valuation. Nine (9) active employees were missing date of hire, so assumed to have twelve (12) years of service, which is the service average for July 1, 2013 valuation. Hire dates were not on prior valuation data. No employees were missing gender, so no special adjustments were needed. No employees were missing coverage tier, so no special adjustments were needed.

Page 12 SECTION V - SUMMARY OF ASSUMPTIONS (CONTINUED) Special Adjustments Medicare Tax Subsidy Excluded Population Amortization of Initial UAL Rounding of Results No other special adjustments were provided since client data was complete for purposes of completing the valuation. All active and retired employees provided were valued. The Medicare tax subsidy is not reflected in valuation. There is no offset in premium rates charged to employer and post-65 costs are illustrated gross of subsidy. Population reflects all benefit eligible employees provided. Any new hires after date of data collection are not reflected in the valuation. Initial unfunded accrued liability (UAL) was amortized over thirty (30) years on a level dollar basis. Initial UAL valued on an closed basis. Results are illustrated to the nearest dollar. In using unrounded results (exact dollars), no implication is made as to the degree of precision in those results. Clients and their auditors should apply their own judgment as to the desirability of rounding when transferring results from this valuation report to the client's financial statements. Initial Year of Recognition of GASB We have not reviewed the audited financials of client so are not providing an opinion on when client 43 & 45 should recognize and comply with GASB 43 & 45. We rely on the opinion of the client and its auditor for this determination. Employee Contracts & Collective Bargaining Agreements Other Comments Employee contracts and collective bargaining agreements specific to retiree benefits were not reviewed. Results based on information as provided by City. Actuarial methods, considerations, and analyses used in forming this certification conform to the appropriate Standards of Practice and guidelines of the Actuarial Standards Board (ASB).

Page 13 SECTION VI - DEFINITIONS & GLOSSARY Actuarial Present Value of Future Benefits (PVFB) Accrued Liability (AL) Unfunded Accrued Liability (UAL) Annual Required Contribution (ARC) Service Cost (Normal Cost) Amortization Payment Adjustment to ARC Pay-As-You-Go Closed Group Valuation Decrement Rates Discount Rate Service Cost Projected Unit Credit Plan Members Other Post Employment Benefits (OPEB) Substantive Plan Present value of all benefits expected to be paid by the employer, net of expected retiree contributions, based on actuarial assumptions used in the valuation. Assumptions are illustrated in Section VI. This is the past service liability or present value of all benefits earned to date. Since retiree medical benefits are not accrued based on a specific formula like a pension plan, the accounting standard (GASB 45) requires the benefits to be earned ratably from date of hire to date of full eligibility for benefits. For retirees and actives that are immediately eligible to retire and receive full benefits, the AL equals the PVFB. For actives not yet eligible to retire, it equals a pro-rata portion of the PVFB based on past services to total service for that employee. This is the excess of the AL over assets. The employer's periodic required contribution to a defined benefit OPEB plan. The portion, as determined by a particular Actuarial Method, of the Actuarial Present Value of the benefits and expenses, which is provided for by future Normal Costs. The proportion of the PVFB of a plan benefits and expenses which is allocated to a valuation year by the Actuarial Cost Method used in the valuation. This is the cost of OPEB attributed to the current year of service. The portion of the pension plan contribution (ARC) which is designated to pay interest on and to amortize the Actuarial Unfunded Accrued Liability (UAL) For this valuation, the adjustment to the ARC reflects the gain/loss from the prior valuation. Cumulative gain/losses are amortized over thirty (30) years on a level dollar basis. This is a method of financing a postretirement benefit plan under which the contributions to the plan are generally made at about the same time and amount as benefits and expenses become due. This means that it does not consider the Actuarial PVFB associated with future entrants. This is mortality, turnover, disability and retirement rate assumptions. This is used to determine likelihood of employee qualifying for OPEB and when benefits will commence. Mortality is also used to determine probability of individuals to live and continue to receive benefits. Assumption used for converting present value of future benefits less future contributions into today's dollar amounts. Accounting terminology, which is the same as the Normal Cost. This is an actuarial cost method whereby the costs of benefits earned is funded each year and the value of the accrued liability reflects the benefits earned to date. The individuals covered by the terms of an OPEB plan. The plan membership generally includes employees in active service, terminated employees who have accumulated benefits but are not yet receiving them, and retired employees and beneficiaries currently receiving benefits. Medical, dental, vision, life and other health benefits provided to terminated or retired employees including their dependents and beneficiaries. The terms of the OPEB plan as understood by the employer and its plan members. Recognition Year for GASB No. 2007-08 Fiscal Year: This impacts public agencies with total annual revenue of $100 million or 43 & 45 more must comply in the fiscal year after December 15, 2006. 2008-09 Fiscal Year: This impacts public agencies with total annual revenue between $10 million and $100 million must comply in the fiscal year after December 15, 2007. 2009-10 Fiscal Year: This impacts public agencies with total annual revenue less than $10 million must comply in the fiscal year after December 15, 2008.

Page 14 SECTION VII: FORTY TWO (42) SCENARIOS FOR DISCOUNT RATES AND HEALTHCARE COST TREND RATES VALUATION RESULTS FOR UAL AS OF JULY 1, 2013: Ultimate Discount Rate Scenarios Healthcare Cost Trend Scenarios 2% 3% 4% 5% 6% 7% 3% $ 140,163,839 $ 118,114,565 $ 101,144,805 $ 87,869,749 $ 77,325,308 $ 68,829,762 4% $ 162,285,624 $ 134,559,754 $ 113,565,848 $ 97,392,041 $ 84,727,501 $ 74,658,833 5% $ 197,809,617 $ 160,366,601 $ 132,615,068 $ 111,668,283 $ 95,581,876 $ 83,024,646 6% $ 248,709,625 $ 197,127,772 $ 159,587,495 $ 131,756,670 $ 110,755,963 $ 94,640,146 7% $ 316,726,134 $ 245,790,041 $ 194,982,162 $ 157,906,964 $ 130,363,834 $ 109,548,278 8% $ 407,008,345 $ 309,614,417 $ 240,882,850 $ 191,460,873 $ 155,274,738 $ 128,314,809 9% $ 527,513,406 $ 393,702,606 $ 300,604,571 $ 234,599,673 $ 186,940,846 $ 151,916,999 RATIO OF UAL TO CURRENT VALUATION: Ultimate Discount Rate Scenarios Healthcare Cost Trend Scenarios 2% 3% 4% 5% 6% 7% 3% 143.9% 121.3% 103.9% 90.2% 79.4% 70.7% 4% 166.6% 138.2% 116.6% 100.0% 87.0% 76.7% 5% 203.1% 164.7% 136.2% 114.7% 98.1% 85.2% 6% 255.4% 202.4% 163.9% 135.3% 113.7% 97.2% 7% 325.2% 252.4% 200.2% 162.1% 133.9% 112.5% 8% 417.9% 317.9% 247.3% 196.6% 159.4% 131.8% 9% 541.6% 404.2% 308.7% 240.9% 191.9% 156.0% Notes: 1. Trend rate scenarios are for ultimate trend assumptions in Year 2020 and later. Trend rates for Years 2015 to 2019 as per valuation report. 2. Current valuation results are based on a 5% discount rate. The prior valuation report reflected a 5% discount rate for these scenarios. 3. Current valuation results illustrated as of July 1, 2013.

Page 15 SECTION VIII: THIRTY (30) ADDITIONAL SCENARIOS BASED ON TREND AND RETIREE CONTRIBUTIONS - UAL SUMMARY Future Ultimate Healthcare Cost Trend Scenarios Retirees Contribution Rates 4% 5% 9% 11% 13% 15% 7.5% $ 99,380,167 $ 114,192,373 $ 242,064,309 $ 376,396,986 $ 610,597,766 $ 1,034,689,249 10.0% $ 98,429,371 $ 112,994,325 $ 238,605,973 $ 370,435,401 $ 600,116,585 $ 1,015,785,188 20.0% $ 94,626,190 $ 108,202,133 $ 224,772,629 $ 346,589,064 $ 558,191,864 $ 940,168,941 30.0% $ 90,823,008 $ 103,409,940 $ 210,939,286 $ 322,742,727 $ 516,267,142 $ 864,552,695 40.0% $ 87,019,826 $ 98,617,747 $ 197,105,942 $ 298,896,390 $ 474,342,421 $ 788,936,448 INCREASE/(DECREASE) IN UAL TO CURRENT VALUATION BASED ON SCENARIO: Current Valuation @ July 1, 2013 & 5% Discount Rate: $ 97,392,041 Future Ultimate Healthcare Cost Trend Scenarios Retirees Contribution Rates 4% 5% 9% 11% 13% 15% 7.5% $ 1,988,126 $ 16,800,332 $ 144,672,268 $ 279,004,945 $ 513,205,725 $ 937,297,208 10.0% $ 1,037,330 $ 15,602,284 $ 141,213,932 $ 273,043,360 $ 502,724,544 $ 918,393,147 20.0% $ (2,765,851) $ 10,810,092 $ 127,380,588 $ 249,197,023 $ 460,799,823 $ 842,776,900 30.0% $ (6,569,033) $ 6,017,899 $ 113,547,245 $ 225,350,686 $ 418,875,101 $ 767,160,654 40.0% $ (10,372,215) $ 1,225,706 $ 99,713,901 $ 201,504,349 $ 376,950,380 $ 691,544,407 RATIO OF UAL TO CURRENT VALUATION UAL: Future Ultimate Healthcare Cost Trend Scenarios Retirees Contribution Rates 4% 5% 9% 11% 13% 15% 7.5% 102.0% 117.3% 248.5% 386.5% 626.9% 1062.4% 10.0% 101.1% 116.0% 245.0% 380.4% 616.2% 1043.0% 20.0% 97.2% 111.1% 230.8% 355.9% 573.1% 965.3% 30.0% 93.3% 106.2% 216.6% 331.4% 530.1% 887.7% 40.0% 89.4% 101.3% 202.4% 306.9% 487.0% 810.1% Notes: 1. Trend rate scenarios are for ultimate trend assumptions in Year 2020 and later. Trend rates for Years 2015 to 2019 as per valuation report. 2. Current valuation results are based on a 5% discount rate. The prior valuation report reflected a 5% discount rate for these scenarios. 3. Updates to future retiree contribution rates only. Current retirees based on current percentages. 4. Current valuation results illustrated as of July 1, 2013.

Page 16 SECTION IX: TWENTY (20) YEAR FORECAST OF PAY-AS-YOU-GO COSTS FOR CURRENT POPULATION % Year over Year Projected % Increase Pay-As-You-Go (Decrease) 1 Projected PAYGO for fiscal year July, 2013 to June 30, 2014 $ 4,487,851 n/a 2 Projected PAYGO for fiscal year July, 2014 to June 30, 2015 4,411,971-1.7% 3 Projected PAYGO for fiscal year July, 2015 to June 30, 2016 4,623,344 4.8% 4 Projected PAYGO for fiscal year July, 2016 to June 30, 2017 4,743,185 2.6% 5 Projected PAYGO for fiscal year July, 2017 to June 30, 2018 4,828,084 1.8% 6 Projected PAYGO for fiscal year July, 2018 to June 30, 2019 4,893,638 1.4% 7 Projected PAYGO for fiscal year July, 2019 to June 30, 2020 4,918,193 0.5% 8 Projected PAYGO for fiscal year July, 2020 to June 30, 2021 4,992,318 1.5% 9 Projected PAYGO for fiscal year July, 2021 to June 30, 2022 5,072,572 1.6% 10 Projected PAYGO for fiscal year July, 2022 to June 30, 2023 5,055,596-0.3% 11 Projected PAYGO for fiscal year July, 2023 to June 30, 2024 5,094,558 0.8% 12 Projected PAYGO for fiscal year July, 2024 to June 30, 2025 5,209,399 2.3% 13 Projected PAYGO for fiscal year July, 2025 to June 30, 2026 5,326,286 2.2% 14 Projected PAYGO for fiscal year July, 2026 to June 30, 2027 5,524,714 3.7% 15 Projected PAYGO for fiscal year July, 2027 to June 30, 2028 5,631,609 1.9% 16 Projected PAYGO for fiscal year July, 2028 to June 30, 2029 5,933,165 5.4% 17 Projected PAYGO for fiscal year July, 2029 to June 30, 2030 6,059,590 2.1% 18 Projected PAYGO for fiscal year July, 2030 to June 30, 2031 6,135,974 1.3% 19 Projected PAYGO for fiscal year July, 2031 to June 30, 2032 6,367,806 3.8% 20 Projected PAYGO for fiscal year July, 2032 to June 30, 2033 6,540,945 2.7% Subtotal $ 105,850,798 Notes: 1. Projections are based on the current census population for the July 1, 2013 Valuation Report. Group is assumed to be closed group with no new hires. 2. The above costs are net of retiree contribution rates, and are based on the healthcare cost inflation and decrement tables used in the valuation report.